Readers have reported that Apple Retail Stores have begun selling iPhone 3G units without contract. Similar to the policy change at AT&T Retail Stores, the 8GB model sells for $599 without contract, and the 16GB model sells for $699 without contract. The new offering has not appeared on the Apple Store Online.

As PhoneNews.com has reported since early July, the price points are skewed to be higher than the costs incurred by signing up for service, and then canceling. Even with activation, early termination fee, and a month of service charges, it’s cheaper to sign up for service with AT&T and then cancel… than purchase an iPhone 3G without contract in the first place.

Eight months ago, AT&T announced that iPhone 3G would be sold without contract at the $599 and $699 price-points for the two respective models.

Christopher Price is the Founding Editor of PhoneNews.com. Today, he leads the team building Console, Inc. - a new kind of Android™ device. He still likes to pontificate... a lot. You can visit his personal blog at ChristopherPrice.net.